ISA

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Reducing Site Energy Costs with Combined Heat
and Power Generation

• ISA
• April 23rd, 2009

www.f4energy.com
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Presentation Outline

• Introduction to F4energy Combined Heat and
  Power
• Background to the Irish Energy Market Energy
  Prices
• Examples of CHP Applications in Ireland
• Fossil Fuel CHP, Renewable CHP, Trigeneration
• CHP Installation Considerations
• CHP Design Philosophies
• Investment Payback Example
• Questions

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About F4energy

• F4energy was founded in late 2001 by former ESB
  and Siemens professionals to provide Combined
  Heat and Power (CHP) solutions in the Irish
  market.
• Comprehensive CHP Offering including Feasibility
  Assessment, Design, Installation and
  Maintenance.
• F4energy currently operates 70 CHP plants in
  Ireland
• District Heating, Shopping Centres, Industry,
  Hospitals, Hotels, Office Blocks, Universities,
  Local Government

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What is Combined Heat and Power (CHP) ?-
Generation of Power Heat from Single Fuel Input
-
WASTE.
40 Efficiency
Electricity Output
WASTE.
80 Efficiency
Heat Output
Electricity Output
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Combined Heat and Power in Europe
In Europe, 9 of all power production is produced
using Combined Heat and Power.. In Ireland.
less than 3 of the nations power production is
CHP
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Background to the Irish Energy Market

• Rising National Demand and Security of National
  Grid Supply
• Eirgrids Generation Adequacy Report for
  2008-2014 shortfall of 500MW over next five
  years with an estimated 2.6 p.a. growth in
  national demand.
• Irelands reliance on imported fuels for Energy
  (gas/oil/coal)The upward shift in world energy
  prices will be fully passed on to Irish consumers
  due to Irelands 90 energy import dependency.
  
• Regulatory Drivers Building Energy Ratings
  New Part L compliance driving energy efficiency
  
• CAPITAL GRANT AID SCHEME FOR COMBINED HEAT AND
  POWER
• 30 Capital Grant Aid for CHP Unit, Installation
  Consultancy Costs

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Examples of CHP Applications

• District Heating uses a Centralized Energy Centre
  to produce Energy for multiple clients.
• Example ?Elm Park Site, Dublin City 300m,
  100,000m2 scheme inc. Office Blocks, Daycare
  Centre, 400 Apartments Energy Efficient Design
  includes a centralized Energy Centre with 1.2MWe
  CHP Site Tenants are invoiced for Heat
  Electricity by Energy Supply Company

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District Heating Applications
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District Heating Energy Centre
1200kW Electrical Output Servicing Mixed Use
Development
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Retail Applications
- Tesco Nutgrove CHP Used for Space Hot Water
Heating - 6 month, 24/7 Operation

• New Maynooth, Tramore, Drogheda Trigeneration
  Sites producing Heat, Cooling and Electricity-
  12 month 24/7 Operation

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Hospital Applications
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Industry Applications
CHP Trigeneration Solutions Producing Heat,
Cooling Electricity for Production Processes
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Hotel Applications
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University Applications
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Local Government Applications
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Inside a CHP Plant
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Renewable CHP TechnologiesBiomass Fuel Conversion

• Thermal Conversion Options? Using Heat for
  Combustion or GassificationPower Generation
  Biomass Steam Boiler Turbineor Biomass
  Gassifier Reciprocating Engine/Stirling Engine
• Chemical/Biochemical Conversion Options?
  Transesterification of Oils into BiodieselPower
  Generation Biodiesel refining Recip Engine?
  Anaerobic DigestionPower Generation Anaerobic
  Digester Recip Engine

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Gassifier Reciprocating Engine
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Anaerobic Digester Recip Engine
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AD in operation
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Trigeneration (CCHP)
Heat Rejection
Absorption Chiller(s)
Conventional Chillers
Chilled Water Circuit
CHP Plant(s)
Trigeneration is the generation of Heat, Cooling
and Power from a single fuel input
Heating Circuit
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Seasonal Energy Demand profile heat/cold/electrici
ty
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Absorption Chiller Plant
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CHP Installation Considerations

• Five primary interface points
• 1) Low Pressure Hot Water Piping Connection to
  Boiler
• 2) Natural Gas Piping Connection to Gas Manifold
• 3) Combustion Exhaust
• 4) Ventilation Air
• 5) Power Cable Connection to LV Switchgear

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CHP Gas, Water Exhaust Connections
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CHP Gas, Heat Exhaust Connections
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CHP LPHW Piping Connection
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CHP Installation Considerations

• Points to Consider
• 1) Thermal Centralized/Distributed
  on-site? STEAM / Hot Water?
• CHP/Boiler Control Philosophy? Location of
  Heat Rejection Unit
• 2) Natural Gas Pressure Considerations?
• 3) Combustion Exhaust Common Manifold?
• 4) Ventilation Air Duct to External?
• 5) Power Cable Connection LV/MV? Switchgear?

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CHP Design Philosophies
CHP Design Approach Modulating, Buffer or Base
Load Design Philosophy CHP Plants are available
in a wide output range. The Feasibility Study
matches the clients Energy Demand Profile with
the optimal CHP output range.
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The SPARK GAP Explained

• CHP uses low cost commodity input (natural gas)
  to produce higher value commodity outputs ( Heat
  and Electricity).
• Spark Gap is difference between Gas prices and
  Electricity prices.
• Cost of gas is 2.5cent/kWh Versus 11cent/kWh
  for Electricity.
• Energy Economics for 1MWe Plant hourly daytime
  production
• 1MW electricity output _at_ 11 cent/kWh
  110 1MW Heat output _at_ 3.1 cent/kWh
  31Less- 2.6MW Gas input _at_ 2.5 cent/kWh (
  65)- Lifecycle Maintenance cost per hour (
  12) TOTAL ENERGY SAVINGS FROM CHP PLANT
  64 per hour
• _at_ 7 Day x 24 Hours Annual Operation 512,000
  Savings per year

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Economics of 1MWe Combined Heat and Power

• 1MW electrical output/1MW thermal output (low
  pressure hot water)
• 8,000 annual operating hours (24 Hours Daily)

Outputs
Input
1MW Electricity 8 GWh annually
2.6 MW Nat. Gas 21 GWh annually
880,000
520,000
1MW Heat 5GWh annually
Maintenance
96,000
248,000
Net Annual Energy Savings 512,000
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CHP Project Risk Assessment

• Design Risk Is the CHP Plant Output Sized
  Correctly?- CHP Feasibility Study should
  address Site Thermal, Cooling Electrical Load
  and map the optimal CHP Plant against this
  demand.
• Technical Risk Will the CHP Plant Operate
  Correctly (LIFECYCLE)?Under Capital Purchase
  Contract..Technical Risk can be transferred in
  full to CHP company via the Lifecycle Warranty
  (covers all parts, labour, consumables
  etc.)Under Discounted Energy Supply
  Contract.Technical Risk carried by CHP company
• C) Energy Price Risk Will Spark Gap change
  significantly?Under Capital Purchase
  Contract..Irish Electricity Prices are locked
  into gas price relationship so CHP plant reflects
  National Grid Pricing Structure Under
  Discounted Energy Supply Contract.Energy Price
  Risk carried by CHP Company

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• Questions.
• Thank You.
• Aidan McDonnell
• Business Manager
• F4energy Ltd.Unit 14, Penrose WharfCork
  CityTel 021 4861420Fax [phone]
• www.f4energy.com